Hong Kong Unveils Tax Breaks to Attract Finance and Tech Companies
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong will introduce various tax incentives for new finance and technology industries to attract businesses and reinforce the city's role as a leading financial hub, Chief Executive John Lee Ka-chiu announced in his policy address on Wednesday . Tax concessions to draw intellectual property businesses and selected industries to the city were among the new measures, while the halving of the profits tax rate for gold traders would be sped up . To accelerate the growth of Hong Kong's international gold trading market, the city will push to slash the profits tax rate for qualifying physical commodity traders from the standard 16.5 per cent to 8.25 per cent by next year . The aim was to attract more commodity traders to set up or expand their businesses in Hong Kong, Lee said .
Key Points
- Hong Kong plans to cut the profits tax rate for qualifying physical commodity traders from 16.5% to 8.25% by next year to boost its international gold trading market
- The city will launch its central clearing and settlement system for gold in the first quarter of 2027, with tax concession consultations planned for LegCo
- Since the London Metal Exchange included Hong Kong in its global warehousing network last year, storage area has exceeded 60,000 square metres with over 20,000 tonnes of metal inventory
- A trial gold clearing and settlement system launched in July involving 11 Chinese and international banks, featuring the Delivery Connect mechanism linking Hong Kong with Shanghai
- The Financial Services and the Treasury Bureau will introduce an amendment bill providing preferential tax rates to certain industries by the end of this year
Why It Matters
These tax incentives position Hong Kong to compete more aggressively with rival financial centres in Asia for commodity trading and corporate treasury businesses . The gold trading infrastructure development aligns with national policy to establish a comprehensive commodity trading ecosystem, potentially cementing Hong Kong's role in the broader Greater China financial market .
These tax incentives position Hong Kong to compete more aggressively with rival financial centres in Asia for commodity trading and corporate treasury businesses . The gold trading infrastructure development aligns with national policy to establish a comprehensive commodity trading ecosystem, potentially cementing Hong Kong's role in the broader Greater China financial market .